Agriculture is Zambia’s tramp card in accelerating economic development and is in the next decade or so, tipped to become the country’s major contributor to the country’s Gross Domestic Product (GDP) after Copper mining.
This is a sector that has great potential to turn round this country’s economic fortunes by enhancing capacity in terms of value addition to the various agriculture produce.
For many years the Zambian agriculture sector has faced a number of challenges emanating from low investments that has had an adverse effect on productivity.
From the time the Patriotic Front (PF) Government assumed office in 2011, the catch phrase has been improvement of the agriculture sector to maximise production, enhance value addition and processing as well as, job creation.
The Government has to start this by addressing numerous challenges mainly from the macro-economic level to help create a conducive atmosphere in which the country’s agri- business could thrive.
It also has to ensure that it increases the annual budgetary allocation from the current Six per cent to at least 10 per cent in line with the 2003 Maputo declaration under the Comprehensive Africa Agriculture Development Programme (CAADP).
Apart from that, it has to ensure there is a policy direction that will address glaring gaps in the sector which have slowed down significant growth.
The move should go in tandem with energy infrastructure development as well as, addressing key drivers such as the livestock sub sector just to invigorate rapid growth.
This is what will continue to attract more private players as evidenced by a German agro firm which is this year expected to roll out investments worth more than $250 million in the production of various crops.
According to the German Ambassador to Zambia Bernd Finke, the investment by this firm is probably the biggest in Africa by that country’s company.
The move comes on the heels of another German firm BASF, a chemical and agro research firm, which aims at enhancing crop protection and production efficiency in the Zambian agro sector.
This German firm will plough its investments in the production of a variety of crops that will boost the Zambian agriculture sector and help to reduce high poverty levels.
And apart from that, the company will critically look into the development of agro processing activities with the sole aim of enhancing value addition.
This is what Zambia urgently needs and this will help the country earn enough foreign exchange through export of processed agro produce.
Entrance of the German firm into the Zambia, shows how much the private sector values this country’s agriculture potential as Mr Finke puts it, this country has an excellent climate and fertile soil.
It is also important to take into consideration that development of the Zambian agriculture sector through private sector participation, will not only enhance value addition through agro processing but also, make the sector one of the largest employer after the mining industry.
The German company’s role will not only help to reduce high poverty levels but also assist in addressing crop deficit challenges that has characterised the country of late.
Its participation will also supplement Government endeavours in its quest to develop industrial clusters in all the country’s provincial centres. OPINION